It’s an underpublicised truth that a Roundhay residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Roundhay property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining falls under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Roundhay will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Skipton Building Society | |
| TSB |
Irrespective of whether you are a tenant or a freeholder in Roundhay,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Roundhay valuers.
Half a year ago William, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Roundhay. Having bought his home twenty years previously, the lease term was of minimal significance. As luck would have it, he realised he would imminently be paying an inflated amount for a lease extension. William was able to extend his lease just under the wire last April. William and the freeholder eventually settled on an amount of £5,500 . If he had missed the deadline, the figure would have gone up by at least £1,100.
In 2013 we were e-mailed by Mr J Wilson who, having purchased a first floor flat in Roundhay in March 1996. The dilemma was if we could approximate the price would be to extend the lease by ninety years. Comparable residencies in Roundhay with 100 year plus lease were valued about £208,600. The average ground rent payable was £60 collected annually. The lease elapsed on 27 January 2083. Given that there were 57 years remaining we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus professional charges.
Mrs W Alexander took over the lease of a newly refurbished flat in Roundhay in March 2005. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable premises in Roundhay with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 collected monthly. The lease concluded in 2103. Considering the 77 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.